Armadale Capital Regulatory News (ACP)

20 Apr 2010 10:56

20 April 2010

Watermark Global PLC("Watermark" or the "Company")

Project Update

Watermark, the AIM quoted Company which focuses on the treatment of Acid Mine Drainage (AMD) in South Africa, previously announced (December 2009) that its wholly owned subsidiary, Western Utilities Corporation Pty Ltd. (WUC) had received approval for its Final Scoping Report and Plan of Study for an Environmental Impact Assessment (EIA) from the Gauteng Department of Agriculture and Rural Development (GDARD).

WUC has since completed fourteen specialist studies as part of the EIA process which will form the basis of the Environmental Impact Report (EIR). Submission of the document remains pending, awaiting confirmation from Government on their preferred Public Private Partnership (PPP) arrangements with the mines. The Company is unsure as to when this confirmation may be received but has secured short term measures to ensure the Company is sufficiently funded during this time.

Given that WUC has also completed a Definitive Feasibility Study (DFS) which has been signed off by Golder & Associates and is now ready to commence with the construction of the required infrastructure, WUC believes that it is several years ahead of the competition in terms of the work completed already and now awaits the Government's decision. The Department of Water Affairs and Environment (DWAE) has announced that they acknowledge their responsibility and liability associated with ownerless and abandoned mines within the project area and a PPP structure will be entered into between the State and the mines. The distribution arrangements for the potable water produced may change as a result of the above-mentioned PPP project due to the need for augmentation of stressed river systems and, hence, this will have an impact on the EIR. It seems clear from recent speeches and debates in the South African Parliament that the DWAE and the government recognise and accept the gravity of the situation and the need to act speedily.

Interim measures are currently being investigated with the mines and Government to prevent the occurrence of an environmental disaster. Below we quote part of a budget address given by the Minister of Water Affairs and Environment on 15 April 2010.

"There is a big problem of Acid Mine Drainage in the Witwatersrand area which threatens our ground water resources and human survival. Even the famous Cradle of Humankind is under threat. We are currently involved with short term solutions to alleviate the worst effects...... We also need a sustainable long term strategy to manage this. I hope you will be encouraged when I tell you that we are presently hard at work with mining operators in search of a lasting solution."

When asked about the status of negotiations between the State and WUC at the Parliamentary Monitoring Group on 24 February 2010, Mr Sizwe Mkhize, a Deputy Director General of DWA replied: "This was not a matter where the DWA could only intervene once; it was something that the country would need to deal with for the next few decades. The document detailing the strategy was already forwarded to the Minister. DWA's work with the WUC was contained in the strategy."

Commenting on the delays, Watermark CEO, Mr Jaco Schoeman said,"whilst the delays currently being experienced are very frustrating for all parties in the end the Company has to await the Government's final decision."

Enquiries:

watermark@bishopsgatecommunications.com

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